Fannie Mae-No Politics (FNMA)

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CBO: Transitioning to Alternative Structures for Housing Finance
Just picked this up from David Fiderer’s twitter ….
http://investorsunite.org/discussion/topic/transitioning-to-alternative-structures-for-housing-finance/


CONGRESS OF THE UNITED STATES
CONGRESSIONAL BUDGET OFFICE
CBO
Transitioning to
Alternative
Structures for
Housing Finance

“This report examines various mechanisms that policymakers
could use to attract more private capital to the
secondary mortgage market. The report also addresses
how those mechanisms could be combined in different
ways to help the market make the transition to a new
structure during the coming decade. CBO analyzed transition
paths to four alternative structures that involve
choices about whether the government would continue
to guarantee payment on mortgages and MBSs and, if so,
what form and prices those guarantees would have.2
Under those different structures, the government’s activities
would range from providing full or partial guarantees
for a large share of the mortgage market to playing a minimal
role in a largely private market (except perhaps during
a financial crisis). Any transition to a new type of secondary
market would also require decisions about what
to do with the existing operations, guarantee obligations,
and investment holdings of Fannie Mae and Freddie
Mac.”